If you have bad credit, you may be tempted by television advertisements that say they can fix your credit and boost your score. Look so easy right? But before you decide if you are going to pay or someone to fix your credit, here are three things to remember before deciding:
1. There is no one who can legally remove accurate and timely negative information from a credit report according to the Federal Trade Commission.
2. You can do for free everything what a credit repair firm does. The only thing that a credit repair firm can provide is that you can save time but it is in exchange for your money. And still, they don’t have any tools or magic tricks that they can do that you cannot do for yourself.
3. Why do you think a credit repair firm making promises that are too good to be true? It is because they want to earn money from you. You better ignore companies that say they can erase your bad credit 100% guaranteed.
Here are 5 steps to repair your credit yourself
●You can get your credit report from all 3 Bureaus all for free.
It is important to review in detail all your credit report from all three credit reporting agencies. This website AnnualCreditReport.com can be used to attain your report for free. It is best to keep track of any information that you believe is incorrect. It is important to ensure the data of Experian, Equifax and TransUnion are accurate because credit scores are built using this data from the credit bureaus.
If you find an error with an existing account.
If you find that the account information being reported is not correct, you should go directly to the financial institution that reported the information. Example of this is when a credit card says that there is a late payment talk to the credit card company so that they can fix the issue and the credit bureaus will be updated.
When someone might have stolen your credit card information, there is a possibility that you might see a big balance on a credit card you never use.
You should make sure that you will have a good paper trail of your correspondence with the financial service companies. You can take further steps if the bank or financial institution does not resolve the issue, you can take further steps. If you have a good paper trail, the next steps will be easier.
Accounts that is not yours
Are you worried that someone opened an account in your name without your knowledge? You could be a victim of identity theft. Here is a website you can use if you suspect that you are a victim of identity theft, IdentityTheft.gov. It is a government website that enables you to report identity theft and get a recovery plan. Freezing your credit and file disputes with the credit bureaus is a must. It is critical to keep a good paper trail.
The CFPB can be used to your advantage
There is another option if you are unable to resolve the issue with your financial institution. Consumer Financial Protection is an agency that makes sure that bank, lenders and other financial companies treat you fairly. If you can’t go directly to the agency, you can file your complaint online a caseworker will help you look into your situation.
The paper trail is the most important in this step. You should make sure that you share as much as details as possible with the CFPB so they can help you the most. It is completely free to complain to the CFPB.
Build your Credit the Old-Fashioned Way
You may need to report your credit information on a monthly basis. It is important that it is a piece of positive information for you to get a good credit score. If you have a credit card, that is the easiest way to have a good credit score. People with good credit scores tend to have utilization below 10%. Pay your statement balance in full and on time every month and your score will improve. You can apply for a secured credit card if you don’t get a regular credit card.
Monitoring your Credit Report and Your Score at All Time
If you find out about an identity theft issue and a credit report, it will be easier to be solved. You should consider signing up for a credit monitoring service in the future. This is to ensure the issues in the future. Other companies offer free credit monitoring like Credit Karma. While others offer daily three-bureau monitoring and resolution services.
Cover Photo Credits: NextAdvisor